Ameriprise Financial Advisor Survey: Despite Market Gains, Clients Remain Wary of Investment Risk

While the economy and markets are improving, clients’ tolerance for investment risk is holding steady or decreasing, according to a majority of advisors polled in a recent Ameriprise financial advisor survey.

"Retail investors remain risk averse because they are psychologically bruised from the recent downturn,” said David Joy, chief market strategist, RiverSource Investments. “Although individual investors are feeling a little better about their monthly statements, given the more than 80 percent rise from the market bottom on March 9, 2009, they remain wary about making new commitments to equity markets. Only time and further evidence of an economic recovery will nurture the healing process."

The survey, conducted in mid-March, asked a group of Ameriprise financial advisors to characterize their clients’ tolerance for investment risk. Of the 977 respondents, 53 percent (518 advisors) said their clients’ tolerance for investment risk is remaining steady. An additional 32 percent (313 advisors) reported decreasing risk tolerance.

The survey was conducted via email, and responses were collected during the period March 12-22, 2010.

About Ameriprise Financial

Ameriprise Financial, Inc., is a diversified financial services company serving the comprehensive financial planning needs of the mass affluent and affluent. For more information, visit ameriprise.com.

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